TCS net up 27% in Q3, beats Street
Market positive on IT sector as industry leader joins Infosys in profit surge. India’s biggest software exporter Tata Consultancy Services reported a stronger-than-expected 27% jump in net profit for its October-December third quarter, HT reports. Digital ready in 2013?business Updated: Jan 15, 2013 01:03 IST
India’s biggest software exporter Tata Consultancy Services on Monday reported a stronger-than-expected 27% jump in net profit for its October-December third quarter, sending stock market sentiments up on the information technology sector.
Three days after industry number two Infosys reported a Street-beating performance TCS reported a quarterly net profit of Rs. 3,550 crore. Quarterly revenue was up 21.7% at Rs. 16,070 crore.
N Chandrasekharan, CEO and managing director of TCS, termed the results as “an excellent quarter of well-rounded performance.” “We believe that clients are going to invest in making their operations digital ready in 2013 and drive business growth,” he said.
TCS share price closed 2.1% up at Rs. 1,334.3 before the results that were announced after the end of trading.
TCS added 31 new clients in the October-December quarter. “There is no change in the pricing environment,” said S Mahalingam, chief financial officer. Operating margins rose by 0.5% point.
The company added 9,561 people to its workforce in the just ended quarter, taking the total strength to 263,637.
“TCS numbers are lower compared to Infosys on the volume growth front. However, margins in terms of constant currency are better,” said Rikesh Parikh, vice-president, market strategy and equities at Motilal Oswal Securities.